Mehai Technology Limited

Industrials — Conglomerates · BSE

₹1.07−₹0.05 (−4.46%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Mehai Technology Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mehai Technology Limited engages in trading, dealing, installation, commission, maintaining and repairing all kinds of electrical and electronic goods.

IndustryConglomerates

SectorIndustrials

Employees9

Annual revenue₹124 Cr

How does it make money?

Turns over ₹124 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹13.83 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹13.83 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +1335% while net margin moved +5% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+1335%

Margin effect+5%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.51 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

56/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

84/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

7.6x

3Y Median

69.2x

40 monthly readings · mean 68.9x · range 4.2x–201.2x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 89% below its 3y median of 69.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 91% below the peer median of 88.8x.

vs. its own history

Cheap

69.2x median over 40 months · -89%

vs. sector peers

Cheap

88.8x median of 3 peers · -91%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.4x

PEG

0.05

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 4209% over 3 years, from ₹1 Cr to ₹64 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 4193% against revenue up 1335% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.2x to 3.7x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 296% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 89% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 91% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 4193% against revenue up 1335%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 107% a year✓ 143.0% CAGR
Latest reported year was 19.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹18 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹89 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.6x

Cheap

Cheap against the generic band

P/B Ratio

0.38x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.14

Profitable

Profitable on a per-share basis

ROE

3.5%

Weak

Weak capital efficiency

ROCE

6.9%

Weak

Low return on total capital employed

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

19.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-33.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹18 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

15.6%

Good

Healthy core-business profitability

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

2.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.1 / 1.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹15 Cr	₹119 Cr	₹124 Cr	+143.0%
EBITDA	₹1 Cr	₹2 Cr	₹13 Cr	₹16 Cr	+138.2%
EBITDA Margin	13.6%	11.4%	10.9%	12.8%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹7 Cr	₹8 Cr	+146.8%
EPS	₹0.03	₹0.14	₹0.27	₹0.1	+54.4%
ROE	3.8%	1.4%	7.6%	3.5%	—
ROCE	6.1%	3.3%	11.6%	6.9%	—
Total Debt	₹1 Cr	₹9 Cr	₹39 Cr	₹64 Cr	+250.6%
Free Cash Flow	-₹1 Cr	-₹35 Cr	-₹56 Cr	-₹18 Cr	—

🟢 Revenue has grown at 143.0% a year over 3 years.

🟢 EBITDA has grown at 138.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.8% over 3 years.

🟢 PAT (Net Profit) has grown at 146.8% a year over 3 years.

🟢 EPS has grown at 54.4% a year over 3 years.

🟡 ROE has held roughly flat at 3.5% over 3 years.

🟡 ROCE has held roughly flat at 6.9% over 3 years.

🔴 Total Debt has grown at 250.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹299 Cr

Total Liabilities

₹79 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹32 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

51.4%

Corporate Actions

Ex-Dividend Date

23 Sept 2019

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 positive4 general

Mehai Technology Ltd Falls to 52-Week Low of Rs 1.05 as Sell-Off Deepens

MarketsMojo, 16 Oct

Mehai Technology acquires full ownership of Hi-Tech Services for ₹4.50 crore

scanx.trade, 12 Oct

Mehai Technology consolidated net profit rises 27.27% in the June 2026 quarter

Business Standard, 15 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Mehai Technology - 12 penny stocks crash up to 65% in a month. Are you holding any?

The Economic Times, 23 Nov

Stock Split: Mehai Technology and 3 other companies trading stock split next month

Alice Blue, 25 JunCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Compare with HIND RECTIFIERS

Equitymaster, 26 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health

WeakProfitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑